The National Landlord Association (NLA) has released
research based on feedback from 1000 landlords, which shows that 19% of
landlords plan to sell one or more of their properties – a historic high!
With record growth in demand from renters, this trend points
to a reduction in the number of available properies suggesting a ‘Perfect Storm’
where demand is rising and supply is falling.
The survey suggests the biggest reason for sale is the
changes to mortgage interest rate relief.
The survey suggests that 78% of those who plan to sell will
sell apartments and terraced houses – which is bad news for young renters, but
potentially good news for first-time buyers.
However, the tightened rules of mortgage lending, mean that for most,
the dream of buying rather than renting is not available to them. It is the high cost of a deposit and/or the
ability to access mortgage finance and not competition with landlords that
stops most young adults from buying a home.
This blog has been pointing out the unwanted consequences of
Government policy for several weeks. If
supply falls and demand rises as forecast, rents will rise naturally. Add to that, the scheduled ban on fees
charged to tenants which will increase landlord costs, and there will be
additional rent inflation pressures.
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